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Instructions to Bidders
Purpose of this Instruction to Bidders and Applicable Law
This Instruction To Bidders (ITB) governs the conduct of public bidding for the procurement of goodsand services herein described by the Quezon City Government, through its Bids and AwardsCommittee – Goods (“QCBAC-Goods”), in accordance with Republic Act No. 9184, and itsImplementing Rules and Regulations. This ITB shall further be used as a guide by all participatingparties/bidders in the conduct of public bidding duly advertised in the Invitation to Bid (ITB), a copy ofwhich is attached hereof.
General and Specific Information on Goods/Services

The description, particulars, technical specifications, and special requirements of the goods/services,
either in the form of items and/or a combination of items are listed in detail in the attached Item
Description and Technical Specifications of Financial Proposal Sheet.

Bidding Documents
The BAC shall only accept Bids, which shall be entirely legibly written (preferably type-written) in
English, from Bidders that have purchased the Bidding Documents.
The Bidder is expected to examine
all instructions, forms, terms, and specifications in the Bidding Documents. Failure to furnish all
information or documents required shall result in the rejection of the Bid and the disqualification of the
Bidder. The Bidding Documents shall consist of the following:
a. The Invitation to Bid ;b. The Instructions to Bidders;c. The Financial Proposal Sheet; andd. Other pertinent documents, if any (e.g., TOR, designs, plans, sketch, brochure, and the like) All Bids shall remain valid for a period of 120 days from date of the opening of Bids.
Pre-Bid Conference/Bid Bulletin
To clarify and address the Bidders’ questions on the requirements, terms and conditions, and
specifications stipulated in the Bidding Documents, a Pre-Bid Conference shall be held as specified in
the Invitation to Bid . Any statement made at the Pre-Bid Conference modifying any of the contents of
A request for clarification on any of the Bidding Documents or for an interpretation must be in writingand submitted to the BAC at least ten (10) calendar days before the deadline for submission andreceipt of bids. The BAC shall respond to the request by issuing a Supplemental/Bid Bulletin at leastseven (7) calendar days before the deadline for submission and receipt of bids Other Supplemental Bid Bulletin/s may, as it becomes necessary, be issued by the BAC from time totime, provided, that no Bid Bulletin shall be issued within seven (7) days from Bid Opening.
Eligibility and Technical Requirements
Eligibility Requirements
Any firm/contractor duly created, organized, and licensed under the laws of the Philippines, either asa sole/single proprietorship, partnership, corporation, cooperative, and/or joint venture (at least 60%Filipino owned) shall be eligible to participate in this Bidding. The documentary evidence of theBidder’s qualifications to perform the contract shall establish that the Bidder has the legal, financialand technical capability necessary to perform the same.
Prior to opening of Financial Proposal Sheet, the Bidder must first pass the eligibility and technical
requirements. Only the Bid/s of Bidder/s who satisfactorily passed eligibility shall be included in the Bid
opening. To establish their eligibility, Bidders shall prepare, file/submit, and substantially complete the
Eligibility Requirements as follows:
A copy of the Certificate of Registration with: the Department of Trade and Industry (DTI), in the case of sole proprietorships; the Securities and Exchange Commission (SEC), in the case of corporations orpartnerships, together with the Articles of Incorporation and By-Laws or Articles ofPartnership and By-Laws, as the case may be; the Cooperative Development Authority (CDA), in the case of cooperatives, togetherwith the Articles of Cooperation and By-Laws; or the appropriate government regulatory agency, if applicable, in case of joint venturesalready in existence (each party to which must comply with the eligibility requirements),together with the Joint Venture Agreement (JVA); or in the absence of the JVA , swornstatements from all the potential joint venture partners stating that they shall enter intoand abide by the provisions of the JVA in the event that their bid is successful; A copy of the valid and current Mayor’s or Business Permit;
Original Copy of the Bidder’s Sworn Statement attesting:
That the Bidder is an established and reputable business entity; That the Bidder took steps to carefully examine all the bidding documents; That the Bidder made an estimate of the facilities available and needed for the contract
to be bid, if applicable;
Supplemental/Bid Bulletins that may be issued by the BAC as provided in Section 22.5.3 ofthe IRR of R.A. 9184; That the Bidder has no conflict of interest in accordance with Section 47 of the IRR of R.A.
9184; That it is not “blacklisted”, suspended or barred by the Government from participating inany government bidding;. That each of the documents submitted in satisfaction of the eligibility requirements iscomplete, authentic and original copy, or a true and faithful reproduction of the original;and The list, USING THE FORMS HEREIN ATTACHED ISSUED BY THE BAC-GOODS of all its on-going
contracts and completed government and private contracts,
including contracts awarded
but not yet started, if any, whether similar or not similar in nature and complexity to the
contract to be bid within the last three (3) years; and single largest similar completed
contract which must be at least fifty percent (50%) of the ABC
of the proposed project to be
bid and copies of the corresponding Purchase Order and acceptance of contract for
government projects or corresponding contract/s or Sales Invoice and official receipt for
non-government projects, as the case may be.

Original copy of the Letter of Authority duly notarized in the case of sole proprietorship, Board
Resolution or Secretary’s Certificate in the case of a corporation, or Partnership Resolution or
Partner/s’ Certificate in the case of a partnership, duly issued by the Bidder in favor of the BAC or
its duly authorized representatives to verify the documents submitted by the Bidder;

Original Copy of the Letter of Authority duly notarized in the case of sole proprietorship, Board
Resolution or Secretary’s Certificate in the case of a corporation, or Partnership Resolution or
Partner/s’ Certificate
in the case of a partnership issued by the Bidder in favor of its duly authorized
representative authorizing the latter to represent and act for and on behalf of the Bidder in all
stages of the Bidding Process and to sign, execute and deliver any and all documents submitted
Copy/copies of the prospective Bidder’s audited financial statements showing, among others,
the prospective Bidder’s total and current assets and liabilities stamped “received” by the BIR
or its duly accredited and authorized institutions for the preceding calendar year, which
should not be earlier than two (2) years from date of submission of bid;
The computed Net Financial Contracting Capacity (NFCC) that is at least equal to the Approved
Budget for the Contract (ABC), which shall be calculated as follows:
NFCC = [(Current assets minus current liabilities) X (K)] minus the value of all outstanding projects under ongoing contracts, including awarded contracts yet to be started = 10 for a contract duration of one year or less; (using the form herein attached issued
by the BAC-Goods)
or a commitment from a universal or commercial bank to extend to it a credit line, if
awarded the contract to be bid, in the amount equivalent to ten percent (10%) ofthe ABC.
Copy/ies of valid, current License to Operate from BFAD and/or DOH Accreditation as Supplier,
Distributor or Manufacturer ;
Copy/ies of Certificate of Product Registration (CPR) ONLY for drugs/ medicines included in the
Bidders proposed bid ;
Technical Requirements
The Technical Proposal shall consist of the following information and documents: Bid Security to be submitted in any of the following forms:a.1. Cash, in an amount equivalent to 2 % of the ABC;a.2. Cashier’s, Manager’s or certified check, bank draft/guarantee confirmed by a Universal or commercial bank in an amount equivalent to 2 % of the ABC; *All Bid Security in the form of Cash or Certified Check and Cashier’s/Manager’s Check
must be duly paid at the City Treasurer’s Office upon the BAC’s issuance of Order of
Standard Instruction to Bidders for Goods and Service: DRUGS AND MEDICINES Payment, a photocopy of official receipt of payment of which indicating Bid Security
for the specific project must be submitted as part of the Technical proposal

a.3. irrevocable letter of credit issued by a universal or commercial bank in an amount a.4. surety bond, callable upon demand, in an amount equivalent to 5 % of the ABC
**Any Bid not accompanied by an acceptable Bid Security shall be rejected as non- responsive. The Bid Security shall be valid for 120 days from the opening of bids, in the
form (all original copies) and amount as indicated above.
Statement of the bidder specifying that the expiration dates of the drugs and medicines from date of delivery shall be two (2) to three (3) years for oral respiratory drugs, intravenous andperitoneal solutions, topical, ophthalmologic and ENT preparations; one (1) to two (2) yearsfor injectable; one (1) year for anesthetics.
Financial Proposal
The Financial Proposal shall consist of original copies of the following documents:
Financial Proposal Sheet using the prescribed form issued by the BAC-GOODS; and
Any other document/s as may be required.
The BAC shall only accept Bids, which shall be entirely legibly written (preferably type-written), from
Bidders that have purchased the Bidding Documents.

The Bidder shall state the quantity (based on the prescribed unit of measurement), unit price, total
price per item, and the total amount of the goods to be delivered. Prices quoted shall be in Philippine
Peso and shall be fixed and will not be subject to variation or price escalation on any account. All
Bids that exceed the ABC shall not be accepted. The bid must be complete; partial bids are not
allowed, unless otherwise stated in this ITB. The following costs (direct or incidental) are deemed
included in the Bid Prices:

All taxes of any kind or nature, like value-added-tax, income taxes, municipal or local taxes; Fees, charges, permits, licenses chargeable on the goods; Insurance, freight, delivery, storage or warehousing costs; Cost of delivery or any special service required of the goods; and Any other relevant or material cost.
Payment of the contract price shall be made in Philippine Peso.
Note: Any missing document in the above-mentioned requirements is a ground for outright rejection of
the bid.

Bid Preparation
The Bidder shall prepare a set of each of the two (2) separate sealed bid envelopes and which shall
be submitted simultaneously. The first shall contain the eligibility requirements of the bid, including the
technical components
under Section 23.1 of the IRR, and the second, the financial component of the
bid. The bid documents shall clearly mark each set as “ELIGIBILITY DOCUMENTS AND TECHNICAL
respectively; signed and initialed by the Bidder or any duly
authorized representative on all the pages thereof, including any interlineations, erasures, or
overwriting. All required documents must be submitted with appropriate page numbers at the right
bottom portion of each page.

The Bidders shall enclose the original of their Technical Proposal and Eligibility Documents in aseparate envelope marked “ELIGIBILITY AND TECHNICAL PROPOSAL DOCUMENTS”, and the original oftheir Financial Proposal in another sealed envelope marked “FINANCIAL PROPOSAL” and sealingthem all together in an outer envelope marked appropriately as follows: contain the name of the project/contract to be bid in capital letters; bear the name and address of the Bidder in capital letters; and bear a warning “DO NOT OPEN BEFORE…” (specifying the date and time for the opening ofBids) If all envelopes are not sealed and marked as required, the government will assume no responsibility
for the misplacement or premature opening of the Bid.

Bid Submission/Opening
The BAC shall open the bids at the time, date and place specified in the Invitation to Bid and the
bidding documents. The Bidders or their duly authorized representatives may attend the opening of
. All members of the BAC or their duly authorized representatives who are present during bid
opening, shall initial every page of the original copies of all bids received and opened.
Standard Instruction to Bidders for Goods and Service: DRUGS AND MEDICINES The BAC shall first open the envelope marked “Eligibility and Technical Proposal Documents” toestablish the completeness of eligibility and technical proposal requirements by determining thepresence or absence of the documents required using a non-discretionary pass/fail criteria.
eligibility check will examine the substance of the contents of the documents. If a prospective Biddersubmits the specific eligibility document required, it shall be rated as “passed” for that particularrequirement.
However, failure to submit a requirement or an incomplete or patently insufficient submission shall be considered “failed” for the particular eligibility requirement concerned. Based onthe findings on the submitted “Eligibility and Technical Proposal Documents”, the BAC shall declareprospective Bidders as either “passed” or “failed”. Immediately after determining compliance with the requirements in the first envelope, the BAC shallforthwith open the second bid envelope (Financial Proposal) of each remaining eligible Bidder whosefirst bid envelope was rated “passed”. The second envelope of each complying Bidder shall beopened within the same day, except as provided under Section 30 of the IRR. In case one or more ofthe requirements in the second envelope of a particular bid is missing, incomplete or patentlyinsufficient, and/or if the submitted total bid price exceeds the approved budget for the contract, theBAC shall rate the bid concerned as “failed.” Only bids that are determined to contain all the bidrequirements for both components shall be rated “passed” and shall immediately be considered forevaluation and comparison.
The BAC shall prepare and sign the Abstract of Bids “As Read” and may be secured from the BACSecretariat immediately after the adjournment of the opening of bids.
A Bidder who has been declared ineligible/failed in any of the requirements of the eligibility, technical
and financial envelope has three (3) calendar days from receipt of written notice within which to file a
request or motion for reconsideration
. In order to avoid unnecessary delay, the notice of ineligibility
shall be prepared by the BAC and deemed received by the Bidder concerned on the day of the
opening of bids. If a Bidder signifies its intent to file a motion for reconsideration, the BAC shall leave
the remaining bid envelop/s of the said Bidder unopened and duly sealed until such time that the
motion for reconsideration has been resolved. If a Bidder waives its right to file a request for
reconsideration through a written/valid waiver, the BAC shall return all its bid documents (Eligibility,
Technical & Financial).
Detailed Evaluation and Comparison of Bids
Lowest/Single Calculated Bid
The BAC shall undertake the detailed evaluation and comparison of Bids which have passed theopening and preliminary examination of Bids in order to determine the Lowest Calculated Bid (LCB).
The LCB shall be determined in two steps: The detailed evaluation of the financial component of the bids to establish the correct The ranking of the total prices as calculated from the lowest to the highest, and the bid withthe lowest price shall be identified as the Lowest Calculated Bid In case of discrepancies or differences between:
The total Bid Amount in FIGURES and in WORDS, the Bid Amount in WORDS shall prevail; and
The Calculated Total Bid Amount shall be the Aggregate Sum of the Item Bid Price for all the items inthe project, and if only one Bidder is declared “eligible” and its bid is found to have passed thetechnical and financial requirement of said Bidder shall be declared as Single Calculated Bid (SCB).
Detailed evaluation of all Bids rated “passed” shall follow using a non-discretionary pass/fail criteria,considering the completeness of the Bid and any minor arithmetical corrections.
Lowest/Single Calculated Responsive Bid
The Lowest Calculated Bid shall undergo post-qualification in order to determine whether the Bidder
concerned complies with and is responsive to all the requirements and conditions as specified in the
Bidding Documents.

Within three (3) calendar days from receipt by the Bidder of the notice from the QCBAC-Goods thatthe Bidder has the Lowest Calculated Bid, the Bidder shall submit the following documentaryrequirements to the QCBAC-Goods: a.) Tax Clearance;b.) Latest Income and Business Tax Returns; Standard Instruction to Bidders for Goods and Service: DRUGS AND MEDICINES c.) Certificate of PHILGEPS Registration;d.) a certificate from the issuing LGU other than Quezon City stating the detailed line of business, e.) Other appropriate licenses and permits required by law and stated in the Bidding Documents.
The BAC shall determine whether the Bidder submitting the Lowest/Single Calculated Bid is qualified toperform the contract satisfactorily using the non-discretionary “pass/fail” criteria. The determinationshall take into account the Bidder’s over-all legal, financial, technical, and production capabilities. Itshall be based upon an examination of the documentary evidence of the Bidder’s qualifications andsuch other third-party information as the BAC deems necessary and appropriate. Any bid which haspassed the criteria shall be considered as the Lowest/Single Calculated Bid.
An affirmative determination shall be a prerequisite for award of the contract to the Bidder.
negative determination shall result in rejection of the Bidder’s Bid, in which case, the Bidder may file amotion for reconsideration within three (3) calendar days upon receipt of Notice of Disqualification.
Failure of the Bidder to file a motion for reconsideration within the reglementary periods, the BAC willproceed to post-qualify the 2nd Lowest Calculated Bid. However, if the second Bidder fails the postqualification, the procedure for post qualification shall be repeated for the Bidder with the nextLowest Calculated Bid, and so on until the Lowest Calculated and Responsive Bid is determined forcontract award. In case of Single Calculated Bid, the BAC shall declare a failure of Bidding for theparticular project.
Section 34.4 If the BAC determines that the bidder with Lowest Calculated Bid/Highest Rated Bid
passes all the criteria for post-qualification, it shall declare the said bid as the Lowest Calculated
Responsive Bid/Highest Rated Responsive Bid, and recommend to the Head of the Procuring Entity
the award of contract to the said bidder at its submitted bid price or its calculated bid price,
whichever is lower or, in the case of quality-based evaluation procedure, submitted bid price or its
negotiated price whichever is lower.

Right to Reject Bids, Declare a Failure of Bidding, and not to
Award the Contract
Based on the grounds mentioned in R.A. No. 9184 and its IRR, the government reserves the right to
reject any and all Bids, declare a Failure of Bidding at any time prior to the contract award, or not to
award the contract, without thereby incurring any liability, and makes no assurance that a contract
shall be entered into as a result of the bidding. The government also reserves the right to waive the
consideration of minor deviations in the bids received which do not affect the substance and validity
of the bids.
The BAC shall recommend the award of the contract to the Bidder whose Bid has been determined tobe substantially responsive as the Lowest/Single Calculated and Responsive Bid.
Prior to the expiration of the period of Bid validity, the BAC shall notify the successful Bidder in writingthat its Bid has been accepted through a Notice of Award received personally or sent by registeredmail. Upon the issuance of the Notice of Award to the successful Bidder, the BAC shall promptly notifyeach unsuccessful Bidder of the fact of award to the successful Bidder.
Signing of the Purchase Order (PO)/Contract/Performance
As the BAC notifies the successful Bidder that its Bid has been accepted, it shall likewise send the
Purchase Order to the Bidder, incorporating therein all agreements between the parties. Within ten
(10) calendar days from receipt of the Notice of Award, the successful Bidder shall sign and date the
contract and furnish the required Performance Security in the form and amount provided below:
Cash, certified check, cashier’s check, manager’s check, bank draft or irrevocable letter ofcredit in the amount of five percent (5%) of the Contract Price; Bank guarantee in the amount of ten percent (10%) of the Contract Price; Surety bond in theamount of thirty percent (30%) of the Contract Price; The proceeds of the performance security shall be payable to the government as compensation forany loss resulting from the Supplier’s failure to fulfill/complete its obligations.
Failure of the successful Bidder to comply shall constitute as a sufficient ground for the annulment of
the award and forfeiture of the Bid Security, in which case the BAC shall initiate and complete the
post qualification of the second Lowest Calculated Bid. The procedure shall be repeated until the
Lowest Calculated and Responsive Bid is identified and selected for contract award. However, if no
Bidder passed the post-qualification stage, the BAC shall declare the bidding a failure.
Standard Instruction to Bidders for Goods and Service: DRUGS AND MEDICINES Notice to Proceed
Upon signing by all the parties concerned of the Purchase Order/Contract, the BAC shall issue a
Notice to Proceed to the successful Bidder, hereafter known as the Supplier. The date of receipt of the
Notice to Proceed will be regarded as the effective date of the Purchase Order/Contract. The
standard terms and conditions of the Purchase Order/Contract are at the back thereof.
The Government Procurement Reform Act
Herein incorporated are the provisions of R.A. No. 9184 and its Implementing Rules and Regulations. All
Bidders are deemed to have read and understood the same and are bound thereby. Omission of any
of its provisions in this Instruction to Bidders shall not constitute a waiver on the part of the Government
as to their applicability to this Bidding. Neither shall the BAC assume any responsibility regarding
erroneous interpretations or conclusions by the Bidder of the data furnished by the Government.
In case of any conflict or discrepancy between the contents of these Instructions to Bidders and R.A.
No. 9184 and its IRR, the latter shall prevail.
Standard Instruction to Bidders for Goods and Service: DRUGS AND MEDICINES


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